BWA Stock Analysis: BorgWarner | NYSE
Auto Parts | NYSE, USA | Market Cap: 12.226m USD | 12M Return: 41.8% | US0997241064 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 161M
EPS Trend: 87.8%
Qual. Beats: 3
Rev. Trend: 27.0%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
BorgWarner Inc. (NYSE: BWA) is a global Tier 1 automotive supplier that delivers technology solutions across combustion, hybrid, and electric vehicle powertrains. The company operates through four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems, and Battery & Charging Systems, reflecting its transition from a traditional drivetrain supplier toward electrification-focused products.
Its product portfolio spans turbochargers, emissions and thermal management systems, transmission components (chain systems, friction and clutch modules, hydraulic controls, torque management devices), power electronics (inverters, onboard chargers, DC/DC converters), rotating electric machines (eMotors, generators), fully integrated drive modules, electronic control units, and battery packs using both nickel manganese cobalt and lithium iron phosphate chemistries. As a Tier 1 supplier, BorgWarner sells primarily to vehicle OEMs and is exposed to the broader industry shift from internal combustion engines to electrified powertrains.
BorgWarner was founded in 1928 and is headquartered in Auburn Hills, Michigan. It was previously known as Borg-Warner Automotive, Inc. and has been listed on the NYSE since 1993, operating within the Consumer Discretionary sectors Automotive Parts & Equipment sub-industry.
- EV segment revenue scales as PowerDrive and Battery Systems win new contracts
- Margin pressure persists as ICE legacy mix declines and EV investments weigh
- China OEM demand softness pressures turbos and drivetrain segment revenue
| Net Income: 415.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.61 > 1.0 |
| NWC/Revenue: 26.18% < 20% (prev 24.41%; Δ 1.77% < -1%) |
| CFO/TA 0.12 > 3% & CFO 1.73b > Net Income 415.0m |
| Net Debt (1.81b) to EBITDA (1.40b): 1.29 < 3 |
| Current Ratio: 2.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (207.3m) vs 12m ago -4.95% < -2% |
| Gross Margin: 19.47% > 18% (prev 18.41%; Δ 1.06% > 0.5%) |
| Asset Turnover: 101.3% > 50% (prev 97.49%; Δ 3.76% > 0%) |
| Interest Coverage Ratio: 9.10 > 6 (EBIT TTM 728.0m / Interest Expense TTM 80.0m) |
| A: 0.27 (Total Current Assets 7.09b - Total Current Liabilities 3.33b) / Total Assets 13.9b |
| B: 0.50 (Retained Earnings 7.02b / Total Assets 13.9b) |
| C: 0.05 (EBIT TTM 728.0m / Avg Total Assets 14.2b) |
| D: 0.69 (Book Value of Equity 5.62b / Total Liabilities 8.14b) |
| Altman-Z'' = 4.48 = AA |
| DSRI: 0.94 (Receivables 3.09b/3.21b, Revenue 14.3b/14.0b) |
| GMI: 0.95 (GM 18.41% / 19.47%) |
| AQI: 0.92 (AQ_t 0.25 / AQ_t-1 0.27) |
| SGI: 1.02 (Revenue 14.3b / 14.0b) |
| TATA: -0.09 (NI 415.0m - CFO 1.73b) / TA 13.9b) |
| Beneish M = -3.16 (Cap -4..+1) = AA |
As of October 15, 2026, the stock is trading at USD 58.50 with a total of 3,128,820 shares traded. Over the past week, the price has changed by -6.19%, over one month by -8.52%, over three months by -8.41% and over the past year by +41.80%.
Current recommended Stop Loss: 55.40 (which is 5.3% or 1.7 ATR below the current price).
BorgWarner has received a consensus analysts rating of 4.13. Therefore, it is recommended to buy BWA.
- StrongBuy: 6
- Buy: 5
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 80.9 | 38.3% |
P/E Trailing = 29.4265
P/E Forward = 11.9332
P/S = 0.8523
P/B = 2.1939
P/EG = 0.326
Revenue TTM = 14.3b USD
EBIT TTM = 728.0m USD
EBITDA TTM = 1.40b USD
Long Term Debt = 3.86b USD (from longTermDebt, last quarter)
Short Term Debt = 40.0m USD (from shortTermDebt, last quarter)
Debt = 4.26b USD (from shortLongTermDebtTotal, last quarter) + Leases 197.0m
Net Debt = 1.81b USD (calculated: Debt 4.26b - CCE 2.45b)
Enterprise Value = 14.0b USD (12.2b + Debt 4.26b - CCE 2.45b)
Interest Coverage Ratio = 9.10 (Ebit TTM 728.0m / Interest Expense TTM 80.0m)
EV/FCF = 11.30x (Enterprise Value 14.0b / FCF TTM 1.24b)
FCF Yield = 8.85% (FCF TTM 1.24b / Enterprise Value 14.0b)
FCF Margin = 8.66% (FCF TTM 1.24b / Revenue TTM 14.3b)
Net Margin = 2.89% (Net Income TTM 415.0m / Revenue TTM 14.3b)
Gross Margin = 19.47% ((Revenue TTM 14.3b - Cost of Revenue TTM 11.6b) / Revenue TTM)
Gross Margin QoQ = 19.76% (prev 19.16%)
Tobins Q-Ratio = 1.01 (Enterprise Value 14.0b / Total Assets 13.9b)
Interest Expense / Debt = 1.88% (Interest Expense 80.0m / Debt 4.26b)
Taxrate = 32.49% (230.0m / 708.0m)
NOPAT = 491.5m (EBIT 728.0m * (1 - 32.49%))
Current Ratio = 2.13 (Total Current Assets 7.09b / Total Current Liabilities 3.33b)
Debt / Equity = 0.76 (Debt 4.26b / totalStockholderEquity, last quarter 5.62b)
Debt / EBITDA = 1.29 (Net Debt 1.81b / EBITDA 1.40b)
Debt / FCF = 1.46 (Net Debt 1.81b / FCF TTM 1.24b)
Total Stockholder Equity = 5.63b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.93% (Net Income 415.0m / Total Assets 13.9b)
RoE = 7.37% (Net Income TTM 415.0m / Total Stockholder Equity 5.63b)
RoCE = 7.67% (EBIT 728.0m / Capital Employed (Equity 5.63b + L.T.Debt 3.86b))
RoIC = 4.95% (NOPAT 491.5m / Invested Capital 9.92b)
WACC = 7.86% (E(12.2b)/V(16.5b) * Re(10.16%) + D(4.26b)/V(16.5b) * Rd(1.88%) * (1-Tc(0.32)))
Discount Rate = 10.16% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.32 | Cagr: -4.20%
[DCF] Terminal Value 75.94% ; FCFF base≈1.22b ; Y1≈1.27b ; Y5≈1.43b
[DCF] Fair Price = 99.61 (EV 22.1b - Net Debt 1.81b = Equity 20.3b / Shares 203.7m; r=8.35% [WACC [floored]]; 5y FCF grow 3.85% → 2.50% )
EPS Correlation: 87.84 | EPS CAGR: 9.12% | SUE: 3.13 | # QB: 3
Revenue Correlation: 27.01 | Revenue CAGR: 0.31% | SUE: 0.94 | # QB: 1
EPS current Quarter (2026-09-30): EPS=1.26 | Chg30d=-0.11% | Revisions=-69% | Analysts=13
EPS current Year (2026-12-31): EPS=5.22 | Chg30d=-0.07% | Revisions=+69% | GrowthEPS=+6.2% | GrowthRev=-0.8%
EPS next Year (2027-12-31): EPS=5.92 | Chg30d=-0.35% | Revisions=+29% | GrowthEPS=+13.4% | GrowthRev=+4.3%
[Analyst] Revisions Ratio: +6% (up=16, down=14)